Australia: Coalition signals it will provide taxpayer support for new and existing coal plants

(The Guardian, 12 Dec 2018) Morrison government specifies generation projects will need to be coal, gas, batteries or pumped hydro to be eligible for underwriting.

The Morrison government has sent a clear signal that it is prepared to provide taxpayer support for both new and existing coal plants, opening registrations of interest in its controversial new power generation underwriting program.

With the government accelerating to cover off major announcements before the Christmas break, the energy minister, Angus Taylor, will on Thursday use an event at a hydro power station in Tasmania to outline the terms of the new program and urge proponents to get their bids in over the summer break – before 23 January.

As well as finalising the criteria for the underwriting program, and calling for expressions of interest, the government is also expected to outline its response to the Ruddock review into religious freedom, and unveil its decision on Australian diplomatic facilities in Israel, before the end of the week.

Taylor will confirm on Thursday that the underwriting program – which has been criticised by business groups and energy stakeholders – will potentially fund generation projects including new builds and brownfield projects, like upgrades or life extensions of existing coal generators.

Taxpayer support will be made available to projects through a range of financing options such as underwriting floor prices, underwriting cap prices, grants and loans – although the finalised program guidelines makes it clear that the amount of support available under each phase of the program, and the extent of taxpayer liability, will be capped.